4 posts tagged with "amm"

Multiswap creates unified liquidity markets for entire asset classes, then composes those markets into broader liquidity products. The fastest path to commercial traction begins with USD.cav: a curated USD market that wins a published execution matrix and gives every included Reserve Asset direct access to the same pool liquidity.

The commercial objective is concrete:

For a defined asset cohort and a defined set of trade sizes, Multiswap delivers the best net executable quote and earns organic routed volume.

Total value locked supports that objective. Execution quality, routed volume, fee revenue, and repeat usage measure the win.

Multiswap places a universe of $n$ Reserve Assets in one pool. This article compares its marginal execution-price impact with an equivalent Uniswap v2 star containing the same assets, initial relative prices, and aggregate initial reserves token for token.

The universe contains $n-1$ assets $A_i$ and one generic stablecoin called $\mathrm{USD}$. The first comparison studies a trade $A\to\mathrm{USD}$. The second studies an $A\to B$ trade, which Multiswap executes as one interaction while a Uniswap v2 star routes through USD.

For equal starting universes, the Multiswap execution-depth advantage is

The advantage increases with the number of assets $n$ and the scale elasticity $e_s$. Multiswap reaches parity with Uniswap v2 at

For the $A\to B$ comparison, the Multiswap advantage in the receive-side $B/\mathrm{USD}$ execution-price response is

Multiswap is a multi-asset exchange built from three native quantities: reserve, scale, and marginal price. The Post-Trade Elasticity Model specifies how those quantities change under an atomic swap, how LP Token liquidity actions extend the same state space, and which internal safety properties follow from the resulting coefficient dynamics.

The model has one central distinction:

• a token can move along a fixed elastic curve because its reserve changes;
• an operation can move the token to a different elastic curve because its coefficient changes.

This distinction unifies the reserve-to-price homomorphism with the complete price law. Swaps keep every Reserve Asset coefficient fixed. Liquidity actions can change the coefficients of nonparticipating Reserve Assets through one common multiplier. The complete transformation remains multiplicative. The reserve ratio describes the fixed-coefficient case, while the coefficient ratio extends the same structure to liquidity actions.

This article develops the complete framework from first principles. It covers atomic $m$-to-$n$ swaps, finite-step divergence, market depth, user-controlled splitting, LP Token liquidity, the exact liquidity-dispersion boundary, gauge-invariant safety, a qualified value-flow entropy, parameter changes, deposit phases, and the current implementation boundary.

Scope: Historical account from July 2022. Product and launch descriptions reflect that time. For the current model and testnet, see Quote Engine and Testnet Demo.

Hello everyone and welcome to the CavalRe! 🤠

In this article, I'd like to introduce myself, introduce the CavalRe, why we're here and what our vision is for the future of decentralized capital markets.